Free Washington D.C. Real Estate Practice Exam

Q1.A real estate agent is working with a buyer to purchase a home with a $300,000 purchase price. Under RESPA requirements, when must the Loan Estimate be provided to the borrower?

• A.Within 1 business day of loan application
• B.Within 3 business days of loan application
• C.Within 5 business days of loan application
• D.At least 7 business days before closing

Q2.A property sold for $240,000. The listing agent received a 3% commission and the selling agent received a 2.5% commission. What was the total commission paid?

• A.$7,200
• B.$6,000
• C.$13,200
• D.$12,000

Q3.Under D.C. Code § 47-2853.13, which of the following best describes the Commission's authority with respect to real estate education requirements for license renewal in the District of Columbia?

• A.The Commission may establish continuing education requirements by rule, but cannot exceed 15 hours per renewal cycle without approval from the DC Council
• B.The Commission has authority to establish, by rule, the continuing education hours and content required for license renewal, including mandatory topics such as DC fair housing and property management law
• C.Continuing education requirements are set exclusively by the DC Council through legislation, and the Commission has no rulemaking authority over curriculum content
• D.The Commission may only recommend continuing education topics to the Mayor's office, which then issues binding requirements through executive order

Q4.A prospective tenant in Washington DC is denied rental housing. The landlord states the denial is due to the tenant's 'prior arrest record with no conviction.' Under the D.C. Human Rights Act of 1977, which of the following BEST describes the landlord's potential liability?

• A.The landlord has no liability because criminal history is not a protected class under any fair housing law.
• B.The landlord may have violated the D.C. Human Rights Act because 'source of income' is a protected class that includes housing vouchers used by people with criminal records.
• C.The landlord may have violated the D.C. Human Rights Act because 'credit information' and 'criminal background' are independently protected characteristics under DC law that prohibit adverse action based solely on an arrest without conviction.
• D.The landlord is only liable if the tenant can prove the denial was motivated by the tenant's race or national origin, not the arrest record itself.

Q5.Under the Truth-in-Lending Act (TILA), lenders must disclose which key information to borrowers?

• A.Property tax amounts only
• B.Neighborhood crime statistics
• C.Previous owners' payment history
• D.Annual Percentage Rate (APR) and finance charges

Q6.When screening potential tenants, which practice would violate the Equal Credit Opportunity Act (ECOA) as applied to rental housing decisions?

• A.Requesting employment verification from all applicants
• B.Requiring a co-signer for applicants with insufficient income
• C.Checking credit reports with written authorization
• D.Asking about an applicant's marital status to determine household composition

Q7.Under TOPA in Washington DC, a tenant organization representing residents of a multi-unit rental building receives a landlord's written offer of sale. Which statement correctly describes the tenant organization's right to negotiate an extension of time to arrange financing?

• A.The tenant organization has no right to any extension; they must act within the initial statutory period or forfeit the right.
• B.The tenant organization may negotiate a time extension with the landlord beyond the initial notice period specifically to secure financing to complete a purchase.
• C.Only individual tenants, not tenant organizations, may negotiate a time extension under TOPA.
• D.A time extension may only be granted by the DC Rental Housing Commission, not by agreement between landlord and tenants.

Q8.Under the Fair Housing Act, what is the maximum amount of punitive damages that can be awarded in a federal court action for a first-time violation?

• A.$37,500
• B.$65,000
• C.$16,000
• D.$150,000

Q9.During a Fair Housing complaint investigation, a HUD investigator finds that a broker's company policy required salespersons to 'steer' prospective buyers of one national origin toward listings in specific zip codes while steering buyers of another national origin toward different zip codes. Which statement best describes the broker's liability under the Fair Housing Act?

• A.The broker is personally liable only if the broker directly participated in individual steering transactions.
• B.The broker has no Fair Housing Act liability because steering is a salesperson-level violation, not a broker-level violation.
• C.The broker faces direct liability under the Fair Housing Act because the discriminatory policy originated with the broker, and brokers are vicariously liable for the discriminatory acts of their salespersons conducted within the scope of employment.
• D.The broker is liable only if buyers can prove actual financial damages from being steered, because the Fair Housing Act requires proof of monetary harm.

Q10.A DC broker's trust account three-way reconciliation for the month of October reveals the following: the broker's journal balance is $142,300; the bank statement balance is $139,800; and the total of all individual client ledger balances is $141,500. After identifying $2,500 in outstanding checks, the reconciled bank balance equals $142,300. Which of the following statements MOST accurately describes the reconciliation result and the broker's required action?

• A.The reconciliation is in balance because the adjusted bank balance equals the journal balance; however, the ledger balance of $141,500 does not match, indicating a $800 discrepancy that must be investigated and resolved before the reconciliation can be deemed complete and compliant.
• B.The reconciliation is complete and compliant because the adjusted bank balance matches the journal balance, and minor ledger discrepancies under $1,000 are within acceptable tolerance under federal escrow accounting standards.
• C.The reconciliation reveals a shortage of $2,500 in the trust account, requiring the broker to immediately deposit personal funds to cure the deficit.
• D.The broker should reconcile only the bank statement to the journal balance; individual client ledger reconciliation is optional under broker trust account rules.

Q11.A landlord owns a rental building in the District of Columbia containing 8 rental units and wishes to sell the entire building. Under the Tenant Opportunity to Purchase Act (TOPA), what is the landlord's FIRST required step before completing the sale to a third-party buyer?

• A.Record a notice of intent to sell with the DC Recorder of Deeds and wait 30 days before issuing any offer to tenants.
• B.Issue a written offer of sale to the tenant association or, if none exists, to each tenant household, providing the statutorily required opportunity to purchase on the same terms.
• C.Obtain written consent from the DC Department of Housing and Community Development (DHCD) before marketing the property to any outside buyer.
• D.Provide tenants with a 90-day notice to vacate before listing the property, since the sale will convert the building to a different use.

Q12.A Washington DC real estate salesperson receives an earnest money deposit check from a buyer. According to D.C. Real Estate Commission rules governing trust funds, what must happen to that deposit?

• A.The salesperson may hold the check uncashed until the seller accepts the offer.
• B.The salesperson must deposit the funds into their personal bank account for safekeeping until closing.
• C.The funds must be promptly deposited into the supervising broker's escrow or trust account and must not be commingled with operating funds.
• D.The salesperson may deposit the funds into the brokerage's general operating account as long as a written record is maintained.

Q13.Under Washington DC Real Estate Commission regulations, how long is a licensed real estate broker generally required to retain transaction records, including contracts, closing statements, and trust account records?

• A.One year from the date of the transaction's closing or termination.
• B.Three years from the date of the transaction's closing or termination.
• C.Seven years from the date of the transaction's closing or termination.
• D.Records need only be retained until the transaction closes and all parties have received copies.

Q14.Under the Equal Credit Opportunity Act (ECOA), which of the following information can a lender legally request from a loan applicant?

• A.Whether the applicant plans to have children in the future
• B.The race of the applicant for monitoring purposes with voluntary disclosure
• C.The applicant's marital status when applying for a joint account
• D.The applicant's age if they appear to be under 25

Q15.A Washington DC salesperson receives a security deposit from a tenant on behalf of her broker/property manager client. The salesperson deposits the funds into the broker's general operating account because the escrow account is temporarily overdrawn. Which DC law or rule does this MOST directly violate?

• A.The DC Consumer Protection Procedures Act, which prohibits deceptive trade practices against tenants
• B.The prohibition on commingling under the D.C. Real Estate Licensure Act of 1982 and D.C. Real Estate Commission escrow rules
• C.The DC Tenant Bill of Rights, which requires all security deposits to be held in an interest-bearing account
• D.The DC Human Rights Act, because depositing funds improperly may disadvantage protected classes of tenants